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FG spent N1.5tr on privatised power firm with no result

The Federal Government in the past four years had spent over N1.5 trillion to support the companies in the privatised power sector but with nothing…

The Federal Government in the past four years had spent over N1.5 trillion to support the companies in the privatised power sector but with nothing to show for it.

The Managing Director, Transmission Company of Nigeria (TCN), Mr Usman Mohammed, revealed this yesterday in Lagos.

He said there is also about N500 billion being planned for electricity distribution companies.

Speaking in Lagos at the Manufacturers Association of Nigeria (MAN) interactive forum on eligible customers regulation, Mohammed said: “We should be worried about what is going on in the nation’s power sector.

Very soon, we are likely to create a big slush. We had it with AMCON and oil subsidy, we are about to have it in the power sector.

“Remember we give the power sector support under the N300 billion CBN power intervention fund; we have done N701 billion guarantee payments, government is about to do another N600 billion under the power recovery plan and there is another discussion on N500 billion distribution support.

“This is worrisome for the industry that is privatized and government is releasing this kind of money, it doesn’t make business sense.’’

He said government is in the current situation as a result of weak distribution companies.

He warned against build-up of slush fund in the nation’s power sector, saying continuous funding of the sector by the Federal Government is not in tandem with privatization policy.

Slush fund, also called black fund, is a fund or account that is not properly accounted, such as money used for corrupt or illegal purposes, especially in the political sphere. Such funds may be kept hidden and maintained separately from money that is used for legitimate purposes.

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